How Can a Foreign Company Collect a Debt in Turkey? Invoices, Enforcement and Payment Orders

Which Rules Govern a Foreign Company's Debt Collection in Turkey?

A foreign company's claim in Turkey is subject to the same rules as those of Turkish creditors and is governed primarily by Enforcement and Bankruptcy Law No. 2004. There is no need to establish a company, branch or bank account in Turkey to pursue enforcement. The creditor company can manage the proceedings from abroad through a power of attorney granted to a Turkish lawyer.

There are several additional rules for a foreign creditor. A place of residence in Turkey must be stated in the enforcement request; otherwise, the place where the enforcement office is located is treated as that place. A power of attorney issued abroad must bear an apostille or consular legalisation and be translated into Turkish by a sworn translator. Security required of foreign parties generally also arises, although an exemption may apply depending on the creditor's country.

This process is described in various ways, including debt recovery, enforcement proceedings or a debt collection action. This article addresses commercial claims. Consumer claims and public debts are subject to different rules and fall outside its scope.

What Are the Routes for Collecting an Invoice Debt in Turkey?

An invoice claim can be pursued in Turkey through 5 routes: a demand letter and negotiation, enforcement without a judgment, mediation and court proceedings, precautionary attachment, and recognition for enforcement where there is a foreign decision. These routes are often used together or in sequence, rather than as substitutes for one another. Enforcement may produce a quick result against a debtor who does not dispute the debt. If the existence of the debt is disputed, court proceedings become unavoidable. Where there is a foreign court judgment or arbitral award, it must first be declared enforceable.

Routes for collecting invoice debts (October 2026)

Precautionary attachment does not collect the debt; it only secures assets. Actual collection takes place through attachment and sale after the enforcement proceedings become final or a court judgment is obtained. Precautionary attachment should therefore be considered alongside enforcement or court proceedings.

Which Facts Determine the Route in a Foreign Company's Debt Claim?

The facts determining the route are the evidence supporting the claim, the debtor's response to the invoice and debt, currency, the contract's jurisdiction or arbitration clause, exemption from security and the debtor's assets. Saying "our invoice has not been paid" does not by itself identify the right route; two claims for the same amount may lead to a quick result in one case and a lengthy court case in the other. These questions make the difference:

• whether the claim is based on a written contract or only an invoice,
• whether the debtor objected to the invoice within 8 days,
• whether delivery of goods or performance of services can be documented,
• whether the debtor acknowledged the debt in writing or made a partial payment,
• which currency the invoice was issued in,
• whether the contract contains a foreign jurisdiction or arbitration clause,
• whether the creditor company's country qualifies for exemption from security,
• whether the debtor has attachable assets in Turkey,
• whether the debtor is in a concordat restructuring or bankruptcy process.

For example, a debtor who acknowledged the debt by email and a debtor who reported defective goods from the start may owe the same amount. The first is less likely to object, and the email is strong evidence in court. In the second case an objection is likely; preparations for litigation should begin at the outset.

If the dispute is not an unpaid invoice but goods that a Turkish supplier failed to deliver, the options differ; see our guide for when a Turkish supplier fails to deliver.

How Do Enforcement Without a Judgment and a Payment Order Work?

Enforcement without a judgment begins with an application to the enforcement office without a court decision and is the most common route for invoice claims. The enforcement office checks the formal requirements of the request and sends a payment order to the debtor. It does not examine whether the claim actually exists; that examination takes place in court only following an objection.

The enforcement request states the claim's amount in Turkish currency, interest and the date from which interest runs. If the claim is in foreign currency, it also states which date's exchange rate is requested. Proceedings are generally initiated where the debtor company has its registered office. The enforcement office where the contract was concluded and the place designated in a valid jurisdiction clause between merchants also have jurisdiction. If proceedings are started in a place without jurisdiction, the debtor can challenge jurisdiction together with the merits, and the jurisdiction objection is examined first.

The payment order tells the debtor to pay the debt within 7 days or object within the same period. The period starts when the payment order is served (Enforcement and Bankruptcy Law, Article 62).

What Happens If the Debtor Does Not Object to the Payment Order?

If the debtor neither pays nor objects within 7 days, the enforcement proceedings become final and the creditor can request attachment. Attachment may cover bank accounts, real estate, vehicles and claims the debtor has against third parties. The debtor must also disclose their assets; failure to do so is subject to coercive imprisonment.

How Do Turkish Enforcement Proceedings Change If There Is a Cheque or Promissory Note?

If the claim is based on a cheque, bill of exchange or promissory note payable to order, the special attachment procedure for negotiable instruments can be used, giving the creditor a stronger position. In these proceedings, the debtor must apply by petition to the enforcement court within 5 days to raise the absence of a debt or a limitation defence. An oral objection to the enforcement office is insufficient.

The most important difference is this: an objection to the enforcement court in negotiable-instrument proceedings does not automatically stop enforcement. Assets can be attached but cannot be sold; the enforcement court may also order a temporary stay. Securing payment by cheque or promissory note in long-term commercial relationships can provide a decisive collection advantage.

What Can the Creditor Do If the Turkish Debtor Objects to the Payment Order?

If the debtor objects in time, enforcement stops automatically and 2 principal routes become available to the creditor: removal of the objection by the enforcement court, and an action to annul the objection in the court of general jurisdiction. Which route is available depends on the document supporting the claim. This distinction is one of the surprises foreign companies encounter most often.

The first route is removal of the objection by the enforcement court. It is quick but generally requires one of these documents: a debt acknowledgment bearing an admitted or notarised signature, or an official document. The period is 6 months from service of the objection on the creditor. An invoice is not one of these documents, and an unsigned email generally does not qualify either.

If the court finds the objection unjustified and the claim is for a determinable amount, it orders the debtor, at the creditor's request, to pay compensation for denying the debt of not less than 20% of the amount awarded. A creditor who does not bring this action in time retains the right to bring an ordinary debt claim.

Is Mediation Mandatory Before an Action to Annul an Objection?

Yes. For commercial monetary claims, applying to a mediator is a condition for bringing an action to annul an objection. The mediator completes the process within 6 weeks, extendable by a maximum of 2 weeks where necessary. From the application to the mediation office until the final report, the limitation period is suspended and the forfeiture period does not run. The 1-year period for bringing the action is therefore not lost during mediation. Where the contract contains an arbitration clause, mandatory pre-action mediation does not apply.

Must a Foreign Company Provide Security for Enforcement Proceedings?

However, security is not required from every foreign creditor. A creditor is exempt where reciprocity exists between its country and Turkey. Reciprocity may arise from a bilateral judicial assistance agreement. A multilateral convention to which both countries are parties, such as the 1954 Hague Convention on Civil Procedure, or actual practice can also establish reciprocity. The Court of Cassation's 12th Civil Chamber also treats companies from countries covered by the 1931 Turkish-British judicial assistance convention as exempt.

Security is a prerequisite for pursuing enforcement; exemption depends on the creditor's country. The country where the creditor company is established should be checked before proceedings are initiated.

Is a Swiss Creditor Exempt from Security Required of Foreign Parties in Turkey?

What Amount, Interest and Exchange Rate Can Be Claimed for an Invoice Debt?

Default interest can be claimed alongside the principal invoice debt, and the interest start date often determines the amount to be collected. For supplies of goods and services between commercial enterprises, the debtor is in default without notice if it fails to pay on the contractual payment date. If no payment date is set, default arises at the end of 30 days after receipt of the invoice (Turkish Commercial Code, Article 1530).

If the contract sets no rate, the Central Bank of the Republic of Turkey announces the rate applicable to these late payments each January. Receipt of the invoice also starts the objection period. A merchant who does not object to an invoice's contents within 8 days of receiving it is deemed to have accepted them. This is a rebuttable presumption and does not by itself prove the contractual relationship.

The statutory interest rate changed in 2026. Law No. 7589 of 16 July 2026 provided that, where no interest has been agreed in the contract, statutory interest is calculated at 80 percent of the Central Bank's rediscount rate. In commercial matters, default interest may be claimed at the Central Bank's advance rate if that rate is higher. The effect of the change on an invoice claim must therefore be calculated separately according to the type of interest applicable.

If the invoice is in euros or dollars, the enforcement request shows the claim's Turkish-currency equivalent and states which date's exchange rate is used. If the creditor chooses the actual payment date rate, the state banks' 1-year foreign-currency deposit rate applies unless the contract provides a higher rate. If the claim is converted into Turkish lira at the due-date or enforcement-date rate, Turkish-lira interest applies.

Can the Turkish Debtor's Assets Be Placed Under Precautionary Attachment Before the Case Ends?

Yes. A precautionary attachment can be requested from the court for a due monetary claim not secured by a pledge. It preserves the debtor's bank accounts, real estate and claims against third parties until enforcement or litigation concludes. For a claim not yet due, it is available only in limited circumstances, such as preparations by the debtor to conceal or transfer assets away.

A creditor requesting precautionary attachment is liable for the debtor's and third parties' losses if the request proves unjustified and generally provides security (Enforcement and Bankruptcy Law, Article 259). No security is required where the claim is based on a court judgment; for documents equivalent to a judgment, security is at the court's discretion. For a foreign creditor, this security is separate from security required of foreign parties. If attachment is granted before enforcement or litigation, the creditor must initiate enforcement or bring an action within 7 days; otherwise the attachment lapses.

The risk of concordat restructuring must also be considered. If the court grants the debtor a concordat moratorium, new enforcement against it generally cannot begin during that period, existing proceedings stop, and precautionary attachment orders are not implemented. Delay against a debtor showing financial distress may leave a claim suspended for months.

Attachment is the creditor's side of the picture. How a bank account in Turkey is blocked or frozen, and how the account holder can challenge it, is explained in our guide to frozen bank accounts in Turkey.

How Can a Debt Be Collected in Turkey Under a Foreign Judgment or Arbitral Award?

A foreign judgment cannot be enforced directly in Turkey; a Turkish court's declaration of enforceability must first be obtained for enforcement of the final judgment. The enforcement action is heard by a court of first instance. It is brought where the debtor is domiciled, failing that where it resides, and if neither exists, before a court in Ankara, Istanbul or İzmir.

The court does not re-examine the merits. It considers reciprocity, public policy, the exclusive jurisdiction of Turkish courts and whether the debtor had a proper opportunity to defend itself before the foreign court. After the declaration of enforceability, enforcement based on a judgment begins. The debtor's grounds for objection are much narrower than in enforcement without a judgment.

Foreign arbitral awards also undergo a similar recognition and enforcement process, and Turkey is a party to the 1958 New York Convention. Where the contract contains an arbitration clause, the debtor may raise an arbitration objection if the creditor sues in a Turkish court. The contract's dispute resolution clause must therefore be read before choosing a route.

Which Deadlines Must Not Be Missed for an Invoice Claim?

Each deadline has a different starting point: some run from receipt of the invoice, others from service of the payment order or objection, and each narrows the creditor's options. Missing a deadline does not always extinguish the claim, but it may close a quicker, cheaper route and require a longer court action. The following table brings these periods together.

Important invoice-claim deadlines (checked in October 2026)

This table shows the general rule; shorter limitation periods may apply to particular types of contract.

When Does an Invoice Claim Become Time-Barred?

Unless the law provides otherwise, invoice claims are subject to the general 10-year limitation period. Some claims, however, have a 5-year period. These include periodic obligations such as rent and interest and claims under mandates, commissions and agency arrangements. Claims under contracts for work are also subject to 5 years, except where the contractor is grossly at fault.

The limitation period is interrupted when the debtor acknowledges the debt or makes a partial payment, or the creditor initiates enforcement or brings an action. It starts running again after interruption. Every email, reconciliation letter or partial-payment record acknowledging the debt should be retained. Before enforcement begins, the period between the invoice due date and the last acknowledgment or payment must be calculated, and claims at risk of becoming time-barred should not be delayed.

Which Documents Matter When a Foreign Company Collects a Debt?

4 document groups matter: the source of the claim, performance, acknowledgment of the debt and the creditor company. The decisive factor is not the number of documents but the document answering the debtor's likely objection. If delivery is disputed, transport documents matter most; if the amount is disputed, reconciliation records come to the fore.

• Source of the claim: contract, purchase order, pro forma invoice, invoice, electronic invoice record.
• Performance: bill of lading, CMR, customs declaration, delivery record, service acceptance letter.
• Acknowledgment of the debt: account reconciliation, email acknowledging the debt, partial-payment receipt, payment plan.
• Creditor company: commercial registry record, evidence of signing authority, apostilled power of attorney with sworn translation.

Not all these documents are required in every case; the same document may be decisive in one and irrelevant in another. It should also be anticipated from the start that foreign-language documents will need sworn translations at the court stage.

Conclusion: The Route for a Foreign Company's Claim Depends on the Documents and Debtor

There is no single correct route for collecting a foreign company's claim in Turkey. Enforcement without a judgment may produce a quick result against a debtor that acknowledged the debt in writing and is unlikely to object. Against a debtor disputing delivery, preparations for mediation and litigation should begin from the outset.

Exemption from security, the interest start date, exchange-rate choice and the debtor's risk of concordat restructuring can lead to very different results for two claims of the same amount. Assessing the documents, contractual jurisdiction clause and debtor's assets together before starting enforcement is as important as meeting deadlines.

The route can be changed after enforcement begins, but every change costs time and money. If the possibility of an objection to an invoice claim is considered from the outset, mediation and litigation preparations can begin on day one, leaving the 1-year period available for proper use.